1、aseanInvesting in ASEANAssociation of Southeast Asian Nations2023|Brunei Darussalam|Cambodia|Indonesia|Lao PDR|Malaysia|Myanmar|Philippines|Singapore|Thailand|Vietnam|one vision one identity one community Copyright Allurentis Limited 2022.All rights reserved.Allurentis is delighted to have been invo

2、lved in partnership with ASEAN on this,the tenth publication and would like to thank all sponsoring organisations for their kind contributions.We are confident that it will raise awareness with all readers and prove to be an invaluable resource,especially for those wishing to become involved in the

3、extraordinary business opportunities and growth prospects within the region.Electronic copies of this publication may be downloaded from Allurentis Limiteds website at ,provided that the use of any copy so downloaded,complies with the terms and conditions specified on the website.Except as expressly

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5、 email to Photos courtesy of:| InvestIng In AseAn 2023ContentsIntroduction Eyes on ASEAN 4Messages US-ASEAN Business Council 7 UK-ASEAN Business Council 8 EU-ASEAN Business Council 9Business-Finance-Advisory Understanding sustainable growth in Southeast Asia HSBC 10 Tackling supply chain sustainabil

6、ity HSBC 13 Finance:Youthful middle-class creates demand 16 Global Expansion made easy Globalization Partners 19 Consumer Markets:E-commerce on the rise 22 Atos addresses IT and decarbonisation challenges across the ASEAN region Atos APAC 25 Your trusted real estate partner One Global Group 29Infras

7、tructure Infrastructure:Foundation for success 31Logistics Logistics:Technology leads growth 34Manufacturing Manufacturing:Moving up the value chain 36 Accelerating technological innovation for a sustainable future Rolls-Royce 39Renewable Energy Renewable Energy:Rising demand to boost supply 41Touri

8、sm Tourism:Restoring sustainably 44Education Education:Securing future generations 46Healthcare&Life Sciences Healthcare:Prosperity strengthens demand 48 Life Sciences:Future is digital 50Agriculture Agriculture:Increasing food security 52Water Water:Investinginflowsofsupply54Defence Defence:Challen

9、ges offer opportunities 5734AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgThe Association of Southeast Asian Nations(ASEAN)is a fast growing trade bloc of 10 member states:Brunei,Cambodia,Indonesia,Lao PDR,Malaysia,Myanmar,the Philippines,Singapore,Thailand and Vietnam.With a combined populati

10、on of over 660 million and a collective GDP of almost US$3.2 trillion in 2019,ASEAN ranks as the third largest regional economyinAsiaandthefifthlargesteconomyintheworld,aftertheUS,China,Japan and Germany.Since it was established in 1967,ASEAN has been on a journey of almost constant growth.Even thro

11、ugh the challenges of the 2008 global economic crisis,regional GDP continued to grow steadily at an average annual growth rate of 5.7%through to 2019.The services sector accounts for just over 50%of the blocs GDP,followed by manufacturing(36%)and agriculture(10.5%)1.Like most regions of the world,Co

12、vid-19 brought a temporary halt to economic expansion.But as the worst impacts of the pandemic continue to recede,ASEAN is once again open for business.Foreign DirectInvestment(FDI)inflowsreboundedin2021toUS$174billion,areturntopre-pandemiclevels,reflectingtheattractivenessoftheregions economy for g

13、lobal investors2.Eyes on ASEANASEAN:Flows of FDI,2019-2021(Billions US$)Intra-ASEANSource:ASEAN Secretariat and UNCTAD,FDI/MNE database(unctad.org/fdistatistics)Note:RCEP=All ASEAN member states plus Australia,China,Japan,the Republic of Korea and New Zealand2019RCEPRCEPRCEP20202021227326

14、231741203321Other RCEP membersOther economies-30%-42%5InvestIng In AseAn 2023-IntroductIon4It would be wrong to characterise ASEAN as a grouping of homogeneous states,however.There remain significant differences in terms ofpolitical,economic and social systems.Average per capita income levels,for ex

15、ample,range from approximately US$1,286 in Myanmar to US$59,785 in Singapore3.Nevertheless,with a large market and strong regional integration,ASEAN remains a major FDI destination in the developing world second only to China and is expected to play an important role in driving global economic recov

16、ery.The International Monetary Fund(IMF)projects that ASEANs economy will grow 5.6%in 2022 and 6.0%in 2023,outpacing the projected global GDP growth rate4.This revival is being driven by several factors,including rising investment from outside the region,growth in manufacturing,increasing strategic

17、importance in global supply chains,and growing investment in infrastructure,including the digital economy.Therewasa12%riseinannouncedgreenfieldinvestmentprojectsin 2021,mostly in manufacturing and infrastructure-related activities.Threeindustriesinparticularaccountedforovertwo-thirdsofgreenfieldinve

18、stment:electronics and electrical equipment;energy and gas;and information and communication.The number of cross-border corporate transactions involving ASEAN states declined between 2020-2021,but the value increased exponentially to almost US$50 billion,driven by several mega-deals5.These included

19、the US$34 billion merger of Grab(Singapore)andAltimeter Growth(United States).ASEANstateshavealsobenefittedfromtheincreasingpopularityof the so-called“China+1”approach to global procurement.This has seen a growing number of foreign investors looking to mitigate their supply chain risk by investing i

20、n a broader base of supply opportunities in the region.Thisisreflectedinthefactthatthemanufacturingsectorsawthestrongest growth in 2021,rising 134%to US$45 billion,focused on key industries such as electric vehicles,electronics,biomedical and pharmaceuticals6.The IMF projects that ASEANs economy wil

21、l grow 5.6%in 2022 and 6.0%in 2023,outpacing the projected global GDP growth rate.AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.org6 RETURN TO CONTENTS1https:/ and banking remained the largest recipient of FDI,however,increasing by 22%to US$57 billion.The dynamic FinTech sector was another key dr

22、iver of growth,as the strong digital economy helped boost investment in data centres and ICT activities.The move towards closer economic integration between ASEAN member states,which began in earnest with the ASEAN Free Trade Area(FTA)established in the 1990s,continues to pick up pace.The FTA was fo

23、llowed by the introduction of the ASEAN Economic Community at the end of 2015,which gradually saw the elimination of most import duties between member states by the end of 2018.The latest evolution of this integration is the Regional Comprehensive Economic Partnership(RCEP),between ASEAN and its fiv

24、e mainregional trading partners:China,Japan,South Korea,Australia and New Zealand.RCEP came into force on 1 January 2022,and has been billed as the worlds largest free trade agreement,accounting for around 30%of the worlds GDP and over a quarter of global trade.Despite on-going uncertainty in the gl

25、obal economy,ASEAN is well placed for continued growth.Its industrial sector is developing fast;regional integration is deepening;there are growing numbers of middle-income consumers feeding into demand;and there is a consistent policy push from governments.For foreign investors,the ASEAN market is

26、increasingly hard to ignore.RETURN TO CONTENTS 7InvestIng In AseAn 2023-MessAgesIn 2022,as ASEAN emerges from the Covid-19 pandemic,US-ASEAN relations increasingly demonstrate ASEANs importance to American economic success.The Council plays a critical role in this relationship by serving as a connec

27、tion between the US private sector and ASEAN governments and markets in support of US government initiatives.InMay2022,theWhiteHousehostedthefirstUS-ASEAN Special Summit,during which the Council created an engagement between ASEAN heads of state and otherseniorofficialsandUSbusinessleaders.Itisthrou

28、ghengagements like this that ASEAN continues to position itself as a trusted trade partner for the United States.The ASEAN Economic Community(AEC),now six years old,constitutestheworldsfifthlargesteconomy,withan average GDP growth rate predicted to top 5%each year well into the next decade.Vietnam i

29、s expected to lead this charge with more than 7%growth this year.LookingspecificallyatASEANsdigitaleconomy,thepaceof growth is among the fastest in the world,expected to exceed US$300 billion by 2025.ASEANs significant growth drives the increase of US-ASEAN trade,which reached US$380 billion in 2021

30、.US CensusBureautradedataforthefirsthalfof2022shows four ASEAN nations ranked within the top 20 US trade partners,and ASEAN is the largest destination for US foreign direct investment,totalling more than the investments in China,Japan,South Korea,and India combined.Reciprocally,ASEAN is now the fast

31、est-growing and one of the largest sources of investment from Asia into the United States.2022 is also notable for the beginning of the Indo-PacificEconomicFramework(IPEF)negotiations,whichincludes seven of the ten ASEAN countries.The Los Angeles Ministerial in September outlined the priorities for

32、the frameworks four pillars:trade,supply chains,decarbonisation,and fair economy.The IPEF ministerial statements demonstrate the mutual ambitions between the United States and ASEAN to deepen the economic relationship between the two.As the IPEF process produces new rules,disciplines and commitments

33、 by participating members,the Council anticipates this will lead to further increases in trade and investment between the United States and ASEAN,further solidifying the region as a trusted trade partner.Ted OsiusUS-ASEAN Business CouncilTed Osius,Ambassador(ret.),President&CEO,US-ABCwww.usasean.org

34、www.ukabc.org.uk8 RETURN TO CONTENTSAssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgSoutheast Asia will be the worlds fourth largest economy by 2030.Its 700 million population is young,educated,increasingly online and with a growing middle-class is attracting the attention of the world.UK busine

35、sses must think of Southeast Asia as part of their global strategy.The UK-ASEAN Business Council is the leading UK based organisation that offers awareness and connections for UK companies looking to do business with Southeast Asias vibrant markets.ASEANhasbeensignificantlyimpactedbythepandemicbut i

36、ts resilience and optimistic outlook can be felt when I meet with government and business leaders in the region.The ASEAN Comprehensive Recovery Framework has been highly effective in bringing the region together to face the challenge of Covid-19 and put ASEAN on a stable footing for strong economic

37、 recovery.Two areas of increasing importance for ASEAN and the UK are digital transformation and green economic growth.ASEANs digital economy is expected to be worth US$1 trillion by 2030 as more and more people in Southeast Asia shop and trade online,accelerated by the pandemic.Green inclusive econ

38、omic growth is the focus of ASEANs governments as they recognise the need to achieve their climate change commitments made at COP26 in Glasgow.The UK business community have the skills and expertise to demonstrate that business can be greenandprofitable.Cambodia being Chair of ASEAN in 2022 has adva

39、nced the region in many areas under the theme Addressing Challenges Together.The UK-ASEAN Business Council is a key partner to ASEAN and has supported Cambodias Chairmanship of the business activities that culminated in the ASEAN Business and Investment Summit,where I led a delegation comprising of

40、globally recognised UK companies.We look forward to Indonesias Chairmanship of ASEAN in 2023 and to supporting plans for the year ahead.The UK and ASEAN have a deepening partnership that is enduring and long lasting.Business relationships take time to develop in Southeast Asia.Now is the time for UK

41、 business to get involved to ensure they are well positioned to be part of ASEANs exciting future.The Rt Hon the Lord Vaizey of DidcotUK-ASEAN Business CouncilThe Rt Hon the Lord Vaizey of Didcot,Chairman,UKABCRETURN TO CONTENTS 9InvestIng In AseAn 2023-MessAges8 RETURN TO CONTENTSwww.eu-asean.euASE

42、AN has made a strong recovery in 2022,coming out oftheworstofCovid-19withsignificanteconomicgrowthandrecordlevelsofinwardFDIflows.Thisistestamentnot only to the quick and impressive economic support packages that much of the region put in place during the darker days of the pandemic,but also to the

43、continuing strong fundamentals that underly the reasons why businesses see ASEAN as an attractive place to invest in and do business with.The region has the worlds third largest workforce which is generally young,eager,and very tech-savvy.Collectively,the ASEAN countries have excellent external faci

44、ng trade deals in place:the RCEP will surely help the region grow further and faster.On top of that,a burgeoning middle-class,significantratesofurbanisation,andbeinggeographicallyadvantageoustoreapthebenefitsofanyrelocation of supply chains,means that ASEAN should be well placed to continue its grow

45、th trajectory,even as the worldfacessignificanteconomicandgeopoliticalissues.European businesses continue to see ASEAN as a thriving region with plenty of opportunity.In our 2022 Business Sentiment Survey,63%of respondents said that they saw ASEAN as the region of best economic opportunity over then

46、extfiveyears:morethansixtimesthenumberforthe next highest rank place,China.Nearly three-quarters said that they were looking to expand their operations in the region.That is a strong show of faith in ASEAN.Internally,ASEAN remains a work in progress as an effective trading bloc.The recently announce

47、d move to upgrade the ASEAN Trade in Goods Agreement will hopefully spur ASEAN economic integration project to greater depths.This is needed if the region is to achieve its stated aim of becoming a single market and production base.Externally,we hope to see the conclusion of the EU-Indonesia CEPA ne

48、gotiations in the not-too-distant future,and hopefully the recommencement of FTA negotiations with the Philippines,Thailand,and Malaysia.That would spell a boon for trade and investment relations in both directions.European businesses have much to offer ASEAN in areas suchassustainablefinance,digita

49、ltechnologies,energytransition,pharmaceutical and medical innovation,to name just a few.The EU-ASEAN Business Council will continue to support European business by bringing its best efforts to ensure a continued,sustainable,and just recovery from the pandemic for ASEAN.Martin HayesEU-ASEAN Business

50、CouncilMartin Hayes,Chairman,EU-ABCThe HSBC Navigator:Southeast Asia(SEA)in Focus report is a pioneering study of how global companies plan to expand their business operations.Amanda Murphy,Head of Commercial Banking,South and Southeast Asia,HSBC,examines its findings and identifies three dominant t

51、rends that will underpin the regions long-term growth.Our survey1 canvassed the views of more than 1,500 international businesses across six major economies that are doing business in Southeast Asia.The region ishometoayoung,increasinglyaffluent,tech-aware,educated population willing to spend.Moreov

52、er,HSBC Global Research2 expects the six markets of Indonesia,Malaysia,the Philippines,Singapore,Thailand,and Vietnam to post economic growth of between 3.6%and 6.7%this year.Thebusinessessurveyedarealsoconfidentabouttheregions economic prospects.Indeed,as many as nine out of ten plan to expand thei

53、r presence,with three infiveanticipatingorganicgrowthof20%ormoreover the next 12 months.Equally encouraging,these firmsareemergingfromapandemicandoperatinginarapidly changing environment.One that is characterised by a core group of drivers referred to as the three Ds:demographics,digitalisation,and

54、dynamism.Demographics-powered by the peopleThe ASEAN bloc,which encompasses ten Southeast Asian economies(including the six featured in our study),has a gross domestic product(GDP)of over US$2.6 trillion,and by 2050,the bloc is expected tobecome the worlds fourth-largest economic area.At the same ti

55、me,its combined population of more than 600 million people is the worlds third largest labour force,ranking behind India and China.Within its member states are 31 cities with more than one million people,andalmosthalfofthetotalpopulation(49.5%)live in urban areas3.This is encouraging,but there are r

56、oadblocks.Finding the right talent remains problematic for some foreign businesses operating in the region,with almost a third of respondents(30%)citing a lack of skilled workers as one of the biggest challenges they face.To put this into context,concerns about recruitment were only just behind worr

57、ies about supply-chain issues(31%)and in second equal place with regulatory concerns.And with sustainability factors demanding greater focus,32%offirmsnotedaninabilitytohireemployeeswithenvironmental,social,and governance(ESG)expertise as a barrier to becoming more ethically focused.Digitalisation m

58、aking the numbers add upSoutheast Asia is also home to a fast-growing population of digital natives operating in an incredibly innovative climate.Some economies have quickly recognised the shift towards digitalisation.Over the past few months,forexample,Malaysiahasconfirmedits5Grollout plan,and the

59、central bank has already awarded fivedigitalbanklicenses4.The Monetary Authority of Singapore(MAS)the countrys de facto central bank issued four licenses at the end of 2020-two Digital Full Bank licenses and another two Digital Wholesale Bank Licenses.A year earlier,the MAS had indicated Understandi

60、ng sustainable growth in Southeast AsiaAmanda Murphy,Head of Commercial Banking,South and Southeast Asia,HSBC 10AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgAmanda MurphyRETURN TO CONTENTS 11InvestIng In AseAn 2023101https:/ 4https:/ to operate in Singapore with a minimal physical presence5.I

61、n Indonesia,seven digital banks are already operational,with another seven awaiting licenses6.Meanwhile,the Philippines issued six licenses,but only two are up and running7.In contrast,Thailand is still catching up8,whereas Vietnam is even further behind.Because there is no licensing framework for d

62、igital banking,aspiring digital banks need to partner with existing lenders instead9.The HSBC study shows that digitalisation ranks at the top of corporate agendas,and companies are happy to spend money to embrace the technologyrequiredtotransformtheirbusinesses.Specifically,halfof the respondents s

63、aid that they intend to invest 5-10%of their operatingprofitinboostingtheirdigitalisationstrategies,whilemorethan a quarter(26%)revealed they plan to invest more than 10%.Thisisnottosaythatcompaniesfindthisevolutioneasy,asmorethanathird(34%)wanthelpdevelopingcybersecurityprogrammes,32%require digita

64、l payment solutions,and 31%want their banking partners support in creating e-commerce and digital platforms.Dynamism lets get this business startedThe entrepreneurialism of Southeast Asia has produced a vibrant start-up scene that rivals any in the world.This has not gone unnoticedbythefirmssurveyed

65、,with89%indicatingplanstoexpandinto the regions markets over the next two years.Concurrently,more than half(55%)expressed a desire to boost their inorganic growth“significantly”,while61%expectorganicgrowthtoincreaseby20%or more over the next 12 months.The determination to participate in Southeast As

66、ias start-up culture is made more compelling by a statistic brought to light by the analysis.As many as four in nine respondents were unaware of or had no plans to harness:the Regional Comprehensive Economic Partnership(RCEP)and the Comprehensive and Progressive Agreement for Trans-PacificPartnershi

67、p(CPTPP),twosignificantfree-tradeagreementsthat involve Southeast Asia.Once knowledge of these accords grows,forward-thinking businesses will inevitably look beyond their core markets for opportunities in neighbouring territories.For balance,its also worth pointing out that regional trade isnt flawl

68、ess.Despiteareductionintariffs,ASEANstillhasanumberoftrade barriers,especially across the services sector.According to the EU-ASEAN Business Council,non-tariff barriers have increased by almost 60%since 2015,overshadowing much of the excellent work on tariff reduction10.Ultimately,the analysis remin

69、ds us that the key to unlocking growth in Southeast Asia is understanding the dynamics of each market and grasping how businesses across individual economies can connect and work together.CMYCMMYCYCMYK13InvestIng In AseAn 2023Covid-19 exposed the vulnerability of supply chains globally.In the earlyd

70、aysofthepandemic,asmultiplelockdownsdisruptedtheflowof raw materials and finished goods around the globe,businessesscrambled to bolster their supply chains resilience.This had the effectofdrivingtradefinancedeeperintothesupplychain,steadyingsuppliers working capital and thus the supply of goods to t

71、he buyer.But in a post-pandemic era where businesses must balance growth plans with ESG goals,the question now being asked is:are supply chains sustainable enough?OurlatestHSBCNavigator:SEAinFocusreportfindingsconfirmthatsustainability is very much front of mind for international businesses operatin

72、ginSoutheastAsia.Nearlyhalf(47%)ofthedecision-makersfrom China,France,Germany,India,the UK and the USA in our survey statetheywouldinvestbetween5and10%oftheiroperatingprofitintoincreasing the sustainability of their business in Southeast Asia over the next 12 months.Sustainability prioritiesWith sup

73、ply chains accounting for as much as 80%of the worlds total carbon emissions1,its no surprise that they are under scrutiny from multinationals looking to improve their sustainability credentials.37%of respondents cite using partners which are more local to my business as their highest priority,follo

74、wed by reviewing sustainability credentials of suppliers(36%).Companies are also keen to deepen their connections with the region through investing in and/or supporting local communities(36%).Promoting nature-positive supply chains and supporting a circular economy are also seen as routes to making

75、business in the region more sustainable.The need for a collaborative approachWhile international businesses may be keen to advance their sustainability agenda,SMEs,which can make up to 90%of a supply chain2,may not have the resources or the expertise to keep pace.Incorporating sustainable practices

76、is costly,and many SMEs are still in recovery mode from the pandemic.To make progress on their sustainability journey they will need support.Forward-thinking companies are addressing this issue through sustainablesupplychainfinance(SSCF)programmes.Theseoffermorefavourablefinancingtermstosupplierstha

77、tdemonstratetheirprogressin improving their environmental,health,safety and social standards.Powerful partnershipsThe US retail giant Walmart has pledged to remove a gigaton(1 billion metric tons)from its supply chain by 20303.But like many retailers,a large proportion of Walmarts Scope 3 carbon emi

78、ssions were embedded in relationships with SMEs.To incentivise its suppliers to reduce their carbon footprint,in 2019 the retailer partnered with HSBC in a SSCF programme.Recently the apparel company PVH has also partnered with HSBC in a SSCFprogramme,inwhatisthefirsttiedtobothenvironmentalandsocial

79、 objectives,and based on suppliers sustainability ratings4.Asdemonstratedbytheseandothersustainablesupplychainfinanceprogrammes,financeisapowerfullevertoimprovethesustainabilityof businesses.Embedding sustainability in global supply chains is not onlybeneficialfortheenvironmentandsociety,butalsoforc

80、ompaniesbottom lines.Tackling supply chain sustainabilityHSBC AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgSeven steps towards a net-zero supply chain1|Rethink product design revaluate how its made,how its used,start again if needed.Build to last,rather than build to replace.2|Embrace collabo

81、ration a supply chain connects companies around the globe.Share knowledge,tech,investment,resources and across the sector too.3|Build capabilities invest in training;hire people with sustainability expertise.4|InvestinR&Dexplorehowalternativefuels,low-energymanufactureand carbon capture might neutra

82、lise or reduce your footprint.5|Harness the power of data better data structures mean you measure carbon emissions,water usage etc.across the supply chain in real-time.6|Think holistically aim for workable standards and practices rather than frequently changing policies.7|Enable financing set up ban

83、king partnerships to help smallsuppliersfinancenetzerostrategies.HSBC has the tools,network and relationships to support businesses on their sustainability journey.Find out how we can help at 3https:/ RETURN TO CONTENTSCMYCMMYCYCMYKTherearepowerfulfactorswhichmakethefinancialsectorinASEANcountries a

84、n attractive proposition for investors and institutions.A young population with a growing middle-class,a digital economy that is accelerating at pace and an entrepreneurial mindset are combining to create a myriad of opportunities.Yet it is important to recognise there are issues which need to be ad

85、dressed.For instance,the Asian Development Bank1 reports that thefinancialsectorstruggleswithchallengessuchasthelackoflong-term finance for infrastructure and limited financial access amonghouseholds and small businesses.At the same time,however,it also highlights new opportunities around more recen

86、t developments,such as the increasing emphasis on climate changefinance,particularlyinalignmentwiththeParisAgreement,andbuildingfinancialframeworkstoaddressadditionalrisks,suchasclimate-related disasters and pandemics.With 383 million people under the age of 35,ASEAN countries have asignificantnumbe

87、rofyoungpeople(61%ofthetotalpopulation)2.Importantly,this demographic is very aware of the need to be skilled andtechnologicallyproficient.According to a survey by the World Economic Forum(WEF)3,15-35 year olds in Southeast Asia are acutely aware of the challenges of the Fourth Industrial Revolution

88、 and place a premium on skills development.Young people within ASEAN believe the number one reason they change jobs is to learn new skills,9.2%believe their current skills are alreadyoutdatedandafurther52.4%believetheymustupgradetheirskills constantly.In addition,the Boston Consulting Group(BCG)4 pr

89、ojects that the numberofmiddle-incomeandaffluenthouseholdsineconomiessuchas Vietnam,Indonesia,and the Philippines will grow by around 5%annually through to 2030.The digital revolutionThese factors are now influencing the digitisation of the regionseconomy,particularlyinthefinancialservicessector.E-c

90、ommerce,forinstance,issurgingahead.ItisexpectedtoreachaboutUS$340.5billionby 20255,yet that is nowhere near its full potential.The digital economy accounts for only 7%of GDP in the region,compared to 35%in the US and 16%in China6.A buoyant e-commerce sector needs other services in order to continue

91、its growth,such as FinTech,digital payments,and data processing.This multiplies the number of substantial investment opportunities in the ecosystem.Young entrepreneurs are already making themselves known.In Indonesia alone,there are more than 62 million SMEs,one for every fiveIndonesiansaccordingtot

92、heWEF7.The rapid growth of some of these SMEs typifies the tech-driventransformation influencing financial markets.Grab started as a taxiapp in Kuala Lumpur and is now headquartered in both Singapore and Indonesia.The Indonesian e-wallet,Ovo,illustrates the opportunities in a country where half the

93、270 million population do not have bank accounts,yet most have mobile phones.As of 2019,it was valued at US$2.9 billion and had been downloaded more than 100 million times8.In May 2021,another two Indonesian tech businesses,Gojek and Tokopedia,merged in a US$17.2 billion deal to form the GoTo Group,

94、a tech giant that now contributes 2%to Indonesias GDP.Not every start-up is going to end up as big as GoTo,but its history shows the salient factors.The country itself is vast and is home to the worlds fourth-largest population and has a rapidly growing middle-class.Finance:Youthful middle-class cre

95、ates demand16AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgRETURN TO CONTENTS 17InvestIng In AseAn 2023-fInAnce161https:/www.adb.org/what-we-do/sectors/finance/overview2https:/www3.weforum.org/docs/WEF_ASEAN_Youth_Survey_2019_Report.pdf Page 53https:/www3.weforum.org/docs/WEF_ASEAN_Youth_Surve

96、y_2019_Report.pdfPage44https:/ Page 86https:/ creating oppsThese examples also demonstrate that in ASEAN markets,many consumerstakeamobile-firstapproach,fuellingtheriseofdigitalecosystems,including highly integrated super apps that offer a one-stop-shop for a range of services.Wary of the increasing

97、,digitally driven competition,many of the largeincumbentfinancialserviceorganisationsareinvestingintheirown tech platforms to respond to consumers evolving expectations.Singapores Overseas-Chinese Banking Corporation,for example,launched a 60 minute mortgage approval service for Singaporeans in May

98、2020,by leveraging automation and straight-through processing of mortgages originated online.In 2020,30%of loans were applied for and executed through this platform.Local governments are also adapting,setting economic goals which cater to its growing and technologically literate middle-class.Thailan

99、d haslaunchedits4.0initiative,a20yearstrategytopivottowardsadigital economy,while the Philippines central bank has approved a Digital Payments Transformation Roadmap with the aim that it will be cash-lite by 2023.Investing in innovationThis triumvirate of changing consumer habits,new payment channel

100、s and commitment from local regulators has boosted digital innovation.In Singapore for example,the Government is playing an active role in promoting blockchain developments.Its central bank is leading the development of a blockchain network prototype,Project Ubin,to create a multi-currency payments

101、system for cross-border clearing andsettlementsgloballypotentiallytheworldsfirst.Overall,theregionisfullofexcitingprospectsforfinancialservicesproducts which can combine local insights and understanding with agility and innovation.Understanding and complying with local employment laws and recruiting

102、 staff in a new territory can prove a major challenge to any business expansion plan.Charles Ferguson,General Manager,(APAC)at G-P(Globalization Partners),explains how using a Global Employment Platform can quickly and cost-effectively,simplify the process.Could you explain the role of an Employer o

103、f Record?An Employer of Record(EOR),allows you to hire around the globe without setting up a legal entity.The EOR serves as the legal employer while the customer manages and directs the daily work of their new team member.Partnering with an EOR will allow businesses to bypass the tedious and lengthy

104、 processes associated with entity set up,enabling companies to hire talent right away in a compliant manner.This broadens the scope for business expansion by allowing the customer to test multiplenewmarketsandfindthebesttalentwherethey need it in a timely and cost-effective way.What are the principa

105、l benefits to a business in using an EOR like G-P?As the industry-leading(EOR),G-P helps growing companies unlock their full business potential bymaking it possible to build highly skilled,global teams in days instead of months.Through our SaaS-based platform,wehelpfind,hire,onboard,payandmanageteam

106、 members quickly and compliantly,to expand growth opportunities for everyone,everywhere without the hassle of setting up local subsidiaries or branchoffices.With G-P,customers receive around-the-clock access to the industrys largest and most experienced team of global HR experts,who assist with ques

107、tions about hiring talent in over 187 countries and consistently achieve a 98%customer satisfaction rating.How did this industry develop,and what is the history of G-P?G-P is the trailblazer that launched the EOR industry.Our company founder and Executive Chair,Nicole Sahin,is the visionary creator

108、of the industry which is at the forefront of future work.NicolefoundedG-Pwhilewitnessingfirst-handinaprevious role how time-consuming,complicated and costly,global expansion was for companies wishing to grow beyond their geographical borders.Today,theneedforflexibleworkisgreaterthaneverand G-Ps AI-d

109、riven technology is enabling the future of the everywhere workforce.We offer greater access to global talent,the ability to scale remote teams and Global Expansion made easy:How an Employer of Record can efficiently and effectively expand your business footprint in the ASEAN regionCharles Ferguson,G

110、eneral Manager,(APAC)at G-P(Globalization Partners)19InvestIng In AseAn 2023Charles Ferguson20AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orggrow revenue faster anywhere in the world,as well as onboarding global talent while minimising costs and risk.What differentiates G-P from other recruitme

111、nt businesses?InAugust2022,G-PwasnamedEORindustryleaderbyresearchfirmNelsonHall for the second time,and then in September 2022,G-P was named the leader in Everest Group Employer of Record Solutions Peak Matrix Assessment 2022.These analyst reports state that G-P stands out for its continued technolo

112、gy innovation to meet fast-growing future market needs.This combined with 95%of new client onboardings done through their owned legal entities,ensures both compliance and security,positioning G-P as a clear leader in the market.The G-P solution is available in 187 countries,and a global team of in-h

113、ouse legal and HR experts provide round-the-clock support and delivers 98%customer satisfaction ratings consistently.We also engage with our customers online in 19 different languages and offer payments in over 180 countries.What is G-Ps corporate strategy and what are its core values?Our tagline,“G

114、lobal Made Possible”is at the heart of what we do we break down barriers for global businesses to enable employment opportunities for everyone,everywhere.We are partners for growth,beyond borders and boundaries and unlock the possibilities of the everywhere workforce.Underpinning this is the G-P Tri

115、ple Bottom Line,where we prioritise happy customers,happy employees and happy shareholders.We believe we can be hungry and humble at the same time in delivering unparalleled product excellence and customer satisfaction.How long has G-P been active in the ASEAN region?G-P has had an active presence d

116、elivering our technology in the region for seven years.We established our revenue team in APAC with headquarters in Singapore in 2020,and we continue to expand our team on the ground as our customer base grows.We now have many team members in Hong Kong,Japan,Korea,Malaysia,Taiwan and the Philippines

117、 as well as Australia and New Zealand.Are there any features of ASEAN that make EOR a particularly attractive option?The ASEAN region is an important growth area for G-P.We are excited about the prospects here as we see a considerable amount of FDIflowingintotheregionwithmanycompaniesexpandingtonewm

118、arkets across Southeast Asia.The regions population of 680 million consists of mostly young,tech-savvy,educated individuals.This is a haven for talent,particularly for international companies who are eager to expand and seize opportunities in this dynamic region.The incredible speed of digitalisatio

119、n,the dynamic start-up scene,and political stability have attracted some of G-Ps biggest customers to the region,where they can access this rich talent pool by leveraging our presence here.How has the growing trend towards remote working affected G-P?We know that remote work works.But expanding your

120、 global workforce brings complexity as well as opportunity.That is where G-P comes in,enabling the future of the everywhere workforce.We are connecting ambitious companies to global talent and talent to opportunities.We are using technology as a force for good,helping people realise their potential

121、and for companies to do the same.In the last year alone,we have expanded our platform to include new innovations:G-P Recruit,G-P Contractor,and G-P API.This powerful combination withintheplatformprovideseverythingcompaniesneedtofindandhiretalentefficientlyandethicallyanywhere,justasquicklyandeasilya

122、s they would hire locally.What are the key drivers of growth for your business across the ASEAN region?The ASEAN region holds great opportunities for companies and investors,from a business growth perspective as well as having a pool of educated,tech natives.With many start-ups and scale-up business

123、es keen to expand quickly into other markets,one of the quickest ways to do so can be to hire locally.Another approach can be to facilitate cross-border mobility and the G-P solution makes both these options fast and easy.EOR services like those offered by G-P,have skyrocketed across the region as t

124、hey make hiring across borders easier by removing the need to have a physical presence in the country while ensuring that legal and HR compliance,from payroll processing and employment,is met.What is your message to businesses seeking to enter or expand in the ASEAN region?With a digitally savvy pop

125、ulation and a high-growth economy,the ASEAN region represents a huge growth opportunity for international companies.With cultural and linguistic barriers,not to mention complex local laws and regulations,doing business in the ASEAN region can be challenging.However,having local hires on the ground c

126、an help your business overcome many of these issues.Working with G-P can assist you with hiring local talent as we take the administrative headaches away and help you handle the legal,HR,and payroll compliance of your local talent,so you can focus on growing and expanding your business and customer

127、base.RETURN TO CONTENTS 21InvestIng In AseAn 202320Today,the need for flexible work is greater than ever and G-Ps AI-driven technology is enabling the future of the everywhere workforce.The ASEAN region is on the brink of a major leap forward economically,a step change offering unique opportunities

128、to investors agile enough to participate.Generally,these are not mature markets,yet consumers are technologically literate and keen to adopt new ways of purchasing products and services as demand grows.In part,this growth will be fuelled by the worlds largest FDA,the Regional Comprehensive Economic

129、Partnership(RCEP),which links ASEAN with major economies,including China,Australia,and Japan,covering a population of 2.2 billion,or almost 30%of the worlds population,with a combined GDP of US$25 trillion1.ASEANisalsoasignificantmarketinitsownright.Atpresentitisthe worlds third most populous econom

130、y and,by 2030,is expected to become the worlds fourth largest.Domestic consumption,which powers roughly 60%of GDP,is estimated to double to US$3.9 trillion2 inthattime.ASEANwillsee140millionnewconsumers,representing16%oftheworldsconsumersmanyofwhomwillmaketheirfirstonlinepurchaseandbuytheirfirstluxu

131、ryproduct.Incomelevelsarerising,with regional GDP per capita expected to grow by an annual 4%(similartotheUS)toUS$6,400in20303,causing many product categoriestoreachinflectionpointswhereconsumptiontakesoff.Growing middle-classThis consumption will come from a growing middle-class which is comparativ

132、ely young and more than competent in using innovative technology to cover their needs.In 2030,the median age in the Philippines will be 29 while Indonesias will be 32.At the same time,around 575 million people,or some 80%of the ASEAN population,will be online.This in turn enables new entrants to mar

133、ket to use technology to grow quickly,without needing to invest so heavily in physical assets.This can already be seen in sectors such as banking,health and education.In Indonesia,65%of the population lack basic bank accounts and 87%have not borrowed or used credit cards in the past year because con

134、ventional banking requires high-income requirements and a physical branch.Whereas digital banks and mobile e-wallets need neither.FinTech companies assess credit risk through data on consumer behaviour rather than knowing an individual customer.Their agent networks also extend credit to rural commun

135、ities and connect to traditional businesses.Consequently,e-wallets are expected to grow 9%annually through to 2030,compared with an estimated 2%growth for traditional bank accounts.The pace is being set by innovative players such as Jenius and Digibank(in digital banking),GoPay and Ovo(in mobile wal

136、lets),and Kredivo and Akulaku(in credit).Geographical barriers have also played their part in encouraging the uptake of digital services,particularly in healthcare and education.For example,Indonesia is the worlds largest archipelago,with more than 17,500 islands,while the Philippines has 2,000 inha

137、bited islands and Vietnam has expansive mountain ranges and impenetrable jungles.Digital potentialDigital healthcare platforms can deliver swift and affordable services to both congested cities and remote rural areas.Consultations,diagnoses and prescriptions are all possible through video,voice call

138、s and chats.For example,Halodoc has roughly two million users in Indonesia,Consumer Markets:E-commerce on the rise22AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgRETURN TO CONTENTS 23InvestIng In AseAn 2023-consuMer MArkets221https:/ 3https:/www3.weforum.org/docs/WEF_Future_of_Consumption_in_F

139、ast_Growth_Consumer_Markets_ASEAN_2020.pdf4https:/ with a network of 20,000 doctors and 1,000 pharmacies.In the Philippines and Vietnam,companies such as Kitika and Doctor Anywhere offer similar services.Online education platforms have also proved popular.In Indonesia,the countrys two largest public

140、 universities,the Indonesia Stock Exchange,and a privately-owned TV station collaborated to create IndonesiaX4,which offers free and paid-for courses online.Similar services are offered through institutions such as AMA University and Topica in the Philippines and Vietnam.The driving force for digita

141、l consumption will be Millennials(born 1981-1995)and Generation Z(born 1996-2012),accounting for 75%of ASEAN consumers and far more open to different ways of using purchases.In the same way as owning music in the form of vinyl and CDs has been superseded by streaming services in the UK,these younger

142、 consumers are happy to rent or share items once purchased outright.Fashion sharing brand Style Theory,for instance,started in Singapore andhasexpandedintoIndonesia.Apartfromclaiming“tofulfileverywomansdreamofhavinganinfinitewardrobe”theservicesaysitismore sustainable,preventing huge volumes of unwa

143、nted garments fromgoingtolandfill.The role for foreign investment is demonstrated by iFlix,a Malaysia based video on-demand service that was founded by British media entrepreneurs and is now available in Malaysia,the Philippines,Thailand,Indonesia,Brunei,Vietnam,Myanmar,and Cambodia5.The service foc

144、uses on local content,offers a monthly subscription and can be viewed through apps available on Google Play.These examples show the immense opportunities ASEAN has for investors with an innovative and compelling service to offer to a fast-growing consumer market that is open to new ideas.Atos levera

145、ges the power of digitalization in ASEANThe end-to-end services we offer help clients adopt technologies that contribute significantly to their decarbonization and deeper citizen engagement.For more information,visit In AseAn 2023Atos is a global leader in secure and decarbonised digital solutions,b

146、eing ranked number one in managed security services worldwide by revenue.The end-to-end services it offers helps clients adopt technologies that improve efficiency,reduce costs,drive innovation and also contribute significantly to decarbonisation and sustainability goals which are a key focus in gov

147、ernment agencies and businesses in this region,as Purshottam Purswani explains.Where is ASEAN in digital transformation?This region is home to abundant natural resources.Over the past two decades,all countries in Asia have thrived economically and have mostly developed social and political structure

148、s that allow them to boost economic development.These structures differ vastly across the region,and the political,social,and economic diversity is much larger than in the rest of the world.The citizens of ASEAN member countries have generally becomemoreaffluent,withrisingGDPineachcountry,with combi

149、ned regional GDP more than quintupled from US$613.551 billion in 2000 up to US$3.11 trillion in 2020.The key industries which are focus areas for ASEANareinagriculture,manufacturing,financeandexport.At the same time,we see that the electronics and technology sectors(robotics,cloud,data analytics,and

150、 IoT)are emerging and are becoming strong contributors to driving the GDP.Covid-19 has accelerated digital transformation in the region by 10 years.As the most populated region in the world,the ASEAN nations are set to be at the forefront of the global digital landscape.Many countries in APAC have r

151、eleased national digitalisation strategies.Singapore released its Smart Nation 2025 Blueprint,Indonesia and Malaysia released strategies to Go Digital and Thailand announced its vision to become a Digital Hub in ASEAN.Atos approach through ASEAN is not to view the region through a single lens or to

152、treat it as a consistent“region,”but we are granular in our various states of development;some countries have developed and are way ahead in terms of technology adoption,like Singapore.At the same time,they carry the largest number of legacy systems due to the early adoption of information technolog

153、y.Some countries like Indonesia and Malaysia are on the development path with their digital transformation strategy.What do you see as the ASEAN regions principal digital needs?From a technological point of view,the region will require a digital economy underpinned by leading Atos addresses IT and d

154、ecarbonisation challenges across the ASEAN regionPurshottam Purswani,CTO,Atos APAC Purshottam Purswani26AssocIAtIon of southeAst AsIAn nAtIonsInformation and Communications Technology(ICT)solutions,an open and green industry eco-system and an effective course that addresses gaps in equality.Cloud an

155、d computing technologies will be the cornerstone of the digital frontier.In an age of digital disruption,the public sector has the opportunity to champion a new digital vision.Atos seeks to highlight the immense opportunities associated with a strategic programme of digital transformation in the pro

156、vision of digital public sector services that may include:Useofroboticsandautomationtodrivegreaterefficienciesandreleasetalent within the public sector;cyber security and the need to win public trust over Government use of personal data;next generation business process services;modernising payments

157、between citizens and government;pioneering technologies such as Augmented Interactive Reality(AIR)to re-invent the way services are delivered and use of big data and analytics to identify risks and opportunities to support evidence-based decision-making.Atos recognises the need for both businesses a

158、nd governments to unite behind a shared vision to combine the best elements of rapidly evolving technology and apply them to deliver a smart digital eco-system.The objective must be to improve public services,deliver greater efficiencyandenhancecitizenexperiencesacrossdepartmentsthroughthis new appr

159、oach.How will the general population in ASEAN benefit from increasing digital services?One of the key areas of public sector digitalisation will be developing citizen-centric digital services to transform public service delivery through the use of technologies such as data science and analytics,arti

160、ficialintelligenceandmachinelearning.Governmentsneedtocreateamoreintegrated,unifiedplatformtodeliverastreamlined,moreefficientandrichercitizenexperience.“Joined-up”has become a buzzword within the public sector.The ability to incorporate digital channel shift into established structures,so that ever

161、ything joins together is key.But all too often,citizens have to use multiple access points to get to what they need.That is because it is challenging for large government departments to make change in collaboration with others especially when so many silos are still in place.Individuals do not want

162、to have to re-key their personal details each time they access a service.More integration is needed across departments,with a common digital platform that learns from citizen interactions.The pandemic brought into focus the intense need for multi-party systems to enable seamless data sharing between

163、 individualsandorganisations,todriveefficiencyinapplicationssuchascontact tracing and frictionless payments.RETURN TO CONTENTS 27InvestIng In AseAn 202326What is Atos doing in the field of cybersecurity?Intherecentpast,cyberprotectionforgovernmentswaschieflyabout safeguarding national security and s

164、hielding secrets and data.Today,lines of defence have moved out of the world of espionage into every part of our public and private infrastructures.There has been a blurring of the lines between public and private.The result is that there are large numbers of daily touch points between citizens and

165、private sector partners delivering services on behalf of government.These companies need to work with public services(and other vendors)to prove their ability to deliver governments three key data requirements:availability,confidentialityandintegrity.Critically,allthree are required simultaneously a

166、nd continuously even more so than in the commercial sector.Governmentsneedtofindabalancebetweensecurity,freedomandconfidence.ThisbalanceisfoundedonachievingtherightlevelsofTrust and Compliance.We give digital marketplace leaders(such as Amazon,eBay and the like)our personal and payment details becau

167、se we trust them.Government must continue to win the same level of public trust especially as wide-scale digital transformation progresses.Compliance underpins this trust.In essence,it is about Government working to protect citizens interests by putting constraints on the way services are provided.I

168、t is important to make sure that regulatory and legal obligations stay relevant and responsive as technologies advance.Atos believes that protection from cyber threats needs to be moved nearer and nearer to the data itself.Atos is developing data-centric security,where each piece of data is surround

169、edbyitsownmetadata(dataaboutdata)thatdefinehowit can be accessed,where and by whom so the data actually helps protect itself.Governments must accelerate the transformation of public services through the smart application of digital technology.Digital technology has the power to transform the way tha

170、t users interact with a wide range of public services from healthcare to criminal justice.How is Atos helping the process of decarbonisation and the building of sustainable businesses?OurASEANcustomersareseekingsolutionsfromusforafuture-fitlow-carboneconomyandarelookingforsolutionsthatcanbenefitthem

171、,such as recommendations to reduce the carbon footprint of the IT environment,and to align digital decarbonisation ambitions with their current product portfolios.Atos has a unique combination of IT expertise and extensive decarbonization expertise,following our acquisitionofEcoAct,aclimateconsultan

172、cyfirmwithover15yearsexperience,enablingustoimproveefficienciesinordertoreduceboth carbon emissions and costs as well as driving innovation to achieve success.What are your key areas of focus across the ASEAN region?For Indonesia,it is driving High-Performance Computing and Security forthepublicsect

173、or,defence,manufacturing,financialservices,andinsurance verticals.Malaysia is our centre of excellence for the digital workplace and strongly focuses on cloud computing and digital transformation using a low-code approach.For Singapore,the focus is on SAP,cybersecurity,cloud engineering,and applicat

174、ion development(DevOps);the team focuses on developing and growing capabilities in data science across all verticals in Singapore.For Thailand,we deliver product lifecycle management solutions,enterprise resource planning solutions,application and data management services,and infrastructure&datamana

175、gement.Marrying the worlds finest properties,with a truly consultative approach,cutting edge technology and a global network,we can maximise your investment returns.COMMERCIALMARKETING&EVENTSMANAGEMENT&CONSULTANCYONE GLOBAL:EXPATLABSPRIVATE OFFICEPRIMEWe are proud members ofAsia Pacific|Middle East&

176、Africa|United KingdomLocal Expertise Global OpportunitiesFollow us onOne Global GroupT:(+65)8614 9874E:enquirySGOne Global Property Services(Singapore)Pte LtdEstate Agent Licence No.:L3010793D IntroductionOne Global Group was launched by James Puddle in Singapore in 2017 with the aim of changing the

177、 way property was sold not only in ASEAN,but globally.He did this by assembling the best teams in major cities around the world and creating a one-stop-shop for property buyers on an international scale.Creating teams with diverse cultures,a passion for real estate and customer service,has developed

178、 the best experience for clients and driven the business to greater heights.One Global Group has always set out to provide a global reach with local expertise so that customers get the personal care of a boutique agency with the services of a large one.As the business has grown,new services and team

179、s have been added,such as proptech and research teams,expat-focused services,and even a privateofficearmwhichactsasarealestateinvestmentadvisory service.Today,OneGlobalGrouphasofficesinmajormarketsin six countries globally including Singapore,Malaysia,Hong Kong,Shanghai,the UAE,South Africa,and the

180、UK.They are also proud members of Leading Real Estate Companies of the World(LeadingRE).The invitation-only association of 550 businesses in 70 countries is home to the worlds prime independent residential brokerages,alongside its luxury marketing division,Luxury Portfolio International(LPI).Both co

181、mplement One Global Groups international reach.“One-Stop-Shop”for real estate By creating an international one-stop-shop for clients,One Global Group not only provides a plethora of specialised services under one roof,but also goes to great lengths to demystify property investments and ensure that c

182、lients have complete transparency.This is achieved through the use of technology;clients have totalvisibilityofthepurchasingprocess24/7throughinnovations such as One Global Connect,their proprietary marketing software.One Global Groups technology offerings also provide clients with the ultimate in r

183、esearch ability.Through the Groups innovative Data Hub,theyre able to get real-time insights into local markets.This is vital in todays world when it comes to purchasing a property,and allows for better educated decision-making and a greaterlevelofinvestmentconfidenceforhomebuyers.Expanding business

184、As part of its DNA,One Global Group is focused on both local and global markets.From its headquarters in Singapore,the Group provides its services to both the local market and overseas.When the business was launched,the team found that investors purchasing Your trusted real estate partnerJames Puddl

185、e,CEO&Founder,One Global Group29InvestIng In AseAn 2023James Puddle30 RETURN TO CONTENTSAssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgresidential properties overseas from Singapore also had a local property portfolio that they wanted One Global Groups experts to manage.Local services have sinc

186、e expanded to include commercial and industrial sales and leasing teams,such as One Global Commercial.The teams provide a wide variety of sales strategies such as auctions,closed bidding,closed tenders,expressions of interest,and private treaty.On a global scale,One Global Groups teams focus primari

187、ly on the Australian and UK markets,however they are able to facilitate new build,secondary market,prime purchases,and global leasing.The Group also has specialised services for expats around the world to assist in managing property portfolios,mortgages,lettings,and management.In addition to this,th

188、ere is a business arm called One Global Private Office which works with private investors,family offices,andinstitutional investors.The team manage everything from project marketing and sales,to a specialised service called One Global Prime,which solely focuses on luxury assets.One key aspect of the

189、 Groups success has been its ability to educate clients through a mixture of technology,content,and events.Overseeing One Global Groups research and technology offerings is the One Global Labs team.They focus on three key areas research,data,and tools to provide next level transparency and enhance t

190、he property investment experience.One Global Groups Marketing and Events team also initiate monthly marketing,events,and seminars,which provide face-to-face opportunities to discuss various topics in-person and virtually.One Global Group also provides B2B services.One Global Groups Marketing and Eve

191、nts team offer business clients fully integrated marketing services.Their expertise enables the successful creation and launching of development brands in multiple territories.This includes ongoing multi-channel marketing campaigns and events.Furthermore,the Group has an in-house consultancy team of

192、 experts that provide businesses with advice in many areas.The One Global Management and Consultancy advise institutional investors on entering the BTR market and supports organisations looking to expand into the territories the Group operate in,amongst other areas of expertise.Having a trusted part

193、ner on the ground helps business clients maximise their success.The futureOne Global Group continues to innovate and break the norm in the real estate industry,both locally in ASEAN and on a global scale.For 2023,the Group has many exciting plans and look forward to rolling them out over the coming

194、year.ASEAN countries fully recognise that they must invest in transport infrastructure if they are to achieve their potential.The region is hometo650millionpeople,howeveritfacessignificantgeographicand topographic challenges.Indonesia,for example,consists of more than 17,000 separate islands,while t

195、he Philippines is made up of more than 7,000.The need to upgrade infrastructure was recognised in the ASEAN Secretariats Master Plan on ASEAN Connectivity 20251 which stated:“To promote travel,investment and trade across the region,ASEAN needs tosignificantlyenhanceitsinfrastructureinvestmentandprod

196、uctivity”.The governments in the region know they can only realise the opportunities offered by the 2020 trade pact the Regional Comprehensive Economic Partnership(RCEP)through improving infrastructure both within and between member states.RCEP created duty-free access to the majority of goods which

197、 could enhance investment in every ASEAN country,but this will only work with necessary ports,roads,railways and airports capacity available to transport people and products.Private sector involvementASEAN governments are open to private sector involvement to help them achieve these objectives,usual

198、ly through PPP arrangements.Many governments have announced comprehensive programmes to attract investment and engage private sector partners in developing their infrastructure.In 2021,for instance,Vietnams transport ministry announced its transport infrastructure masterplan between then and 2030,wh

199、ich is estimatedtocostbetweenUS$39.4billionandUS$62billion.Undertheplan,Vietnam will build thousands of miles of new expressways,high-speed rail routes,deepwater ports,and new international airports.The Government intends for the country to achieve a cargo transportation capacityof4.4billiontonnespe

200、ryear,andaroadtransportcapacitycapable of moving 2.76 billion tonnes of cargo and 9.43 millionInfrastructure:Foundation for success31InvestIng In AseAn 2023-InfrAstructure32AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgpassengers per year2.Two of the major projects,the Dau Giay-Tan Phu Express

201、way and the Gia Nghia-Chon Thanh Expressway,are to be built using the PPP model3.In February 2022,Thailands Ministry of Transport announced plans for 37infrastructureprojectsworthatotalofUS$42.8billion,withsometo be funded by PPPs.Among these,US$18 billion will be directed to five railway projects,U

202、S$8 billion will go to 12 road projects,US$1.7 billion for improvements to airports including Don Muang AirportinBangkok,US$218.5milliontofightcoastalerosionandrebuildbeaches,and US$38 million for a new logistics centre4.In the Philippines,the Government launched a 30 year National Transportation In

203、frastructure Program in October 2021,overseen by the National Economic Development Authority(NEDA).It includes a list of core projects to be implemented between 2023 and 2052,that can beupdatedeveryfiveyearsbyNEDA.ThisincludestheNorthLuzonExpressway to Ilocos Region,the Subic-Clark Railway,and the M

204、ega Manila Airport System5.Indonesia continues to commit large amounts of government spending to transport infrastructure.In 2022,seven important toll road projects weregivenapprovalafterafinancepackageworthUS$524millionwasagreed,enabling contractor Wasikita Karya to start work on toll road connecti

205、ons.In 2021,a number of major projects were completed,including:KRL Jogja Solo,Kuabang Airport,North Halmahera;Jakarta Manggarai Station Flyover;Wae Kelambu Multipurpose Terminal,Labuan Bajo Port6.Overseas investmentASEAN countries have often welcomed foreign investment in their transport infrastruc

206、ture,mainly from Japan in the past,although ChinaisnowthemaininfluenceduetoitsBeltandRoadInitiative(BRI).First proposed in 2013,the BRI aims to improve Chinas connectivity to global markets with massive investments in flagship projectsthroughout ASEAN.RETURN TO CONTENTS 33InvestIng In AseAn 2023-Inf

207、rAstructure321https:/asean.org/wp-content/uploads/2018/01/47.-December-2017-MPAC2025-2nd-Reprint-.pdf2https:/ as Malaysias East Coast Rail Link(ECRL),have been labelled contentious and perhaps illustrate why other investment partners are welcome.The scheme is to connect the eastern coast of Malaysia

208、 with the western part of the country under a deal whereby the 665km railway is built by the Malaysian unit of China Communications Construction Company(CCCC).CCCC will then operate the completed line in a 50:50 joint venture with Malaysia Rail Link(MRL).The line is due to be completed by 20287.Camb

209、odia and Lao PDR have also welcomed substantial Chinese investment through BRI projects.Currently,China has three major projects underway:a US$1.9 billion 190km expressway connecting the capital Phnom Penh to Preah Sihanouk Province on the coast;US$836 million Siem Reap international airport;and the

210、 newUS$1.43billionPhnomPenhinternationalairport.Allarescheduledto be completed around 2023 and are Build-Operate-Transfer(BOT)projects8.In Lao PDR,the flagship BRI initiative is the China-Laos Railway,which started operating in late 2021.This converted Lao PDR from a landlocked country to a land-lin

211、ked one,cutting the travel time between Chinas Kunming to Lao capital Vientiane to around 10 hours.According to the World Bank,the new line could“increase aggregate income in Lao PDR by up to 21%over the long-term”9.This is the prize that all ASEAN countries are seeking improved transport infrastruc

212、ture,in partnership with foreign investors,that also has a tangible impact on GDP.Vietnam will build thousands of miles of new expressways,high-speed rail routes,deepwater ports,and new international airports.Logistics accounts for some 5%of ASEANs GDP and employment,providing jobs for around 17 mil

213、lion people1.It has a wide array of natural advantages and,combined with governmental commitment and targeted national policies,it is making a huge contribution to national economies.Initiatives include the Regional Comprehensive Economic Partnership(RCEP)with Australia,Brunei,Cambodia,China,Indones

214、ia,Japan,South Korea,Lao PDR,Malaysia,Myanmar,New Zealand,the Philippines,Singapore,Thailand,and Vietnam.Under the terms of the RCEP,signatories enable duty-free access to more than 90%of goods that otherwise would include duty.This coincided with the rise of the China Plus One procurement strategy,

215、which encourages companies to improve the security of supply chains through diversifying their sources.Changing technology and new ways of doing business have also played a part in increasing demand for logistics.ASEAN is now a fast-growing market that is home to more than 360 million smartphone-usi

216、ng consumers and has seen its share of e-commerce grow in recent years.ThesectorisexpectedtoreachUS$142.5billioninvalueby 2025,according to a study published by Google,Temasek and Bain&Co2.This is nearly four times more than it was in 2019,when it was only US$36 billion.The outbreak of Covid-19 also

217、 accelerated and amplifiedconsumersrelianceone-commerceandcreatedevenlargerpotential opportunities.Cutting red tapeASEAN continues in trying to cut red tape with the introduction of the ASEAN Single Window(ASW),an electronic fast-track service for companies going through customs between member count

218、ries.Traders can exchange customs documentation through the ASW platform,expediting cargo clearance and reducing paperwork.When first introduced in 2019,only six members used ASW,but a recent symposium3 reported that all members are now involved.The next move is to integrate the ASW with other count

219、ries electronic customs platforms.But the pressure is on to streamline the rules and requirements even further.An OECD report stated that further growth and greater prosperity are constrained by regulatory obstacles that impede competition4.The report found,for example,that logistics costs account f

220、or up to 20%ofthepriceoffinishedgoods,almostdoubletheglobalaverage,in some ASEAN states.It speculated that reducing barriers to trade and amending FDI restrictions to the global average could deliver an increase to GDP of up to 17%over the medium to long-term5.Smart logisticsMeanwhile,ASEAN nations

221、are supporting initiatives such as the ASEAN Smart Logistics Network(ASLN),a platform which aims to promote logistics interconnectivity and integration.This is part of the ASEAN Connectivity Master Plan 2025,which promotes integration between members6.So far,two projects have been launched under the

222、 ASLN:the Vinh Phuc Inland Container Depot Logistics Centre(superport)between Singapore and Vietnam,and the Phnom Penh Logistics Complex in Cambodia(PPLC).ManagedbyVietnamsT&TGroupandSingaporesYCHGroup,theVinhPhuc ICD Logistics Center has more than US$158 million in funding to develop an inland cont

223、ainer depot and logistics centre.Once completed,it will be one of the largest logistics centres in North Vietnam,connecting 20 industrial parks by rail,road,and air,as well as linkages with Hanoi,Hai Phong International Airport,and Chinas Yunnan Province.Logistics:Technology leads growth34AssocIAtIo

224、n of southeAst AsIAn nAtIons www.AseAn.orgRETURN TO CONTENTS 35InvestIng In AseAn 2023-LogIstIcs341https:/asean.org/launch-of-reports-on-aseans-logistics-industry-to-drive-growth-and-regional-economic-integration/2https:/ Phnom Penh Logistics Complex(PPLC)is to be developed by YCH Group,the Singapor

225、e based integrated logistics and supply-chain provider,together with Cambodia based WorldBridge Group7.As with the project in Vietnam,the PPLC will follow YCH Groups superport concept and is estimated to cost US$191.5 million and will begin in earnest in 2023.The PPLC is meant to strengthen Cambodia

226、s standing as a regional logistics hub,because this is the key to its long-term goal of becoming a high-income country by 2050.Country specific solutions neededChallenging regulations and creating superports will go some way towards helping ASEAN countries to improve their logistics capabilities,but

227、 it is important to note that the issues vary from country to country.The World Bank publishes the Logistics Performance Index,measuring how long it takes goods to clear customs and arrive at their destination.Singaporeisranked5th.ThenextcountrytofeatureisThailand(34th)while Myanmar is ranked 139th.

228、Thisdemonstratesclearlythatthereisnoonespecificsolutiontothe challenges posed by logistics in ASEAN countries,meaning that there are opportunities for niche expertise.Some countries,such as Singapore and Malaysia,are turning to parcel lockers to cut out the expensive last mile from the warehouse to

229、the consumers home,for example.Indonesia has carried out pilot schemes with drones delivering goods to the more remote islands in its archipelago.Meanwhile,some third-party logistics services are reported to lack the software required to optimise their ASEAN operations.The market is there and the re

230、d tape is being rolled back,ready for investors to bring their expertise and resources.For many years,the ASEAN region was seen largely as a location for low-wage assembly operations.But there are now a number of significantfactorsthatfavourare-assessmentofthesecountriesrolesin manufacturing.Oneofth

231、eseistheupgradingofproductionprocesses.Industry4.0technologies,including advanced robotics,3D printing,and real-time digital factory simulation are enabling manufacturers to expand from labour intensive assembly work into producing higher-value goods such as machinery and electronics.These developme

232、nts indicate a regional manufacturing capacity that can accommodate a wide range of goods and support a growing number of sectors.The region is also adopting digitalisation with enthusiasm,enabling businesses to gain greater control and security over their supply chains.China Plus OneSecurity of sup

233、ply is another important factor driving manufacturing investmentintheregion.Covid-19intensifiedapressurethatalreadyexisted,namely,to move manufacturing footprints closer to end markets and away from single sources.This can be seen in the China Plus One strategy1,where businesses improve the security

234、 of their supply chain by diversifying their networks into one or more Southeast Asianmarkets.ManyfirmsIntel,FoxconnandLG2,for example are moving their manufacturing into ASEAN,with markets such as Vietnam seeingasignificantincreaseinactivity.SoutheastAsiahasseveralsignificantadvantagesforthoseseeki

235、nga new manufacturing base,with an attractive blend of low costs,speciality skills,and relatively free access to Western and Asian markets.In terms of productivity-adjusted wage rates,ASEAN economies such as Indonesia,Malaysia,the Philippines,and Thailand rank among the most cost-competitive in the

236、world3.Educated workforceBut it is not just lower wage costs that attract global players.Among the reasons Samsung cited for selecting Vietnam as a regional manufacturing hub,were the quality of its young and educated workforce,widespread internet access,a domestic venture capital ecosystem,and gove

237、rnment incentives and support.Samsung4 now produces half of its global smartphone output in the country,together with circuit boards,and cameramodules.InFebruary2022,itinvestedafurtherUS$874millionto make mobile components,including touch sensor modules,linear motors and lenses,bringing its total in

238、vestment in Vietnam to almost US$2.25 billion.Free trade pactTheclimateformanufacturinghasalsobeensignificantlyimprovedby the 2020 free trade pact the Regional Comprehensive Economic Partnership(RCEP).RCEP member countries(Australia,Brunei,Cambodia,China,Indonesia,Japan,South Korea,Lao PDR,Malaysia,

239、Myanmar,New Zealand,the Philippines,Singapore,Thailand,and Vietnam),which have a combined population of 2.2 billion and account for around 30%of global GDP,committed to providing duty-free access to goods that represent 92%of tariff lines.They also pledged to harmonise many rules and regulations tha

240、t affect e-commerce and trade.This will create greater access to Asias largest and mostManufacturing:Moving up the value chain36AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgRETURN TO CONTENTS 37InvestIng In AseAn 2023-MAnufActurIng361https:/ markets,lower the costs of importing manufacturing

241、inputs,and make it easier for companies to build supply chains that leverage different advantages and skills across the region.Manufacturers are already taking advantage of this economic integration.Japanese multinational Yokogawa Electrical Corporation illustrateshowcompaniescanbenefitfromdistribut

242、ingsegmentsofthevaluechainacrossmorethanoneASEANcountry,benefitingfrom low costs in one and advanced manufacturing in another.The company makes precision instruments for industries ranging from chemicals to steel to aerospace.It manufactures components and subassemblies on the Indonesian island of B

243、atam and then ships them to Singapore,where Yokogawa has an innovation centre and its regionallogisticshub,forfinalassemblyandtesting.Semiconductormanufacturer Infineon uses a similar strategy.It assembles andpackagesmorethan400millionsemiconductordeviceseachyearinBatamandshipsthemfortestingtoSingap

244、ore,whereInfineonalsohasR&DandIndustry4.0centres5.Another strategy is to employ ASEAN as a manufacturing base for higher-value,technologically advanced products.Food product manufacturers are leading the way on this front.OmniFoods,a food-tech company set up by Hong Kong based Green Monday,doesvalue

245、-addedprocessingsuchasaddingflavoursandmixingingredients for plant-based“meats”in Thailand,for example6.The US company Eat Just7 is building Asias largest lab-grown meat plant inSingapore,whichbecamethefirstGovernmenttoallowthesaleofcultured meat.This will open in 2023 and will house the single-larg

246、est bioreactor in the cultivated meat industry to date.Value chainThe ASEAN manufacturing sector is also harnessing Industry 4.0technologies to move up the value chain.Singapore,Malaysia,and Vietnam are among the countries that have made advanced manufacturing systems a priority.They have published

247、industry roadmaps and strategic plans and invested in areas such as smart factories,the industrial Internet of Things(IoT),advanced robotics,and cloud computing applications for manufacturing.Samsungs assembly lines in Bac Ninh,Vietnam,for example,incorporate 6,000 robots despite the nations low lab

248、our costs.Similarly,the US$209 million Hyundai Motor Group Innovation Centre in Singapore will incorporate technologies such as AI and industrial IoT into manufacturing processes for cars8.Todays ASEAN markets offer investors and manufacturers far more than cheap labour costs:they provide unmatched

249、opportunities to reshape the economics,the technologies and the logistics of global manufacturing.rolls-LEADING THE TRANSITION TO NET ZERO CARBONOur world is changing.To meet the demands of a growing,more connected society,power must be sustainable.At Rolls-Royce,we believe in the positive,transform

250、ing potential of technology.As a leading power systems provider,we are committed to enabling the sectors in which we operate reach net zero.The breakthrough solutions we are pioneering today will help accelerate the global transition,to create a brighter and greener future for the world.39InvestIng

251、In AseAn 2023Rolls-Royce has had a major presence in ASEAN since the 1950s,with Singapore serving as the regional centre for its Civil Aerospace,Defence and Power Systems businesses.Dr Bicky Bhangu,President,Southeast Asia,Pacific and South Korea,describes how the global power group is committed to

252、delivering clean,safe,and competitive solutions across its operations.What is Rolls-Royce doing to help achieve a carbon-neutral world?As a leading power systems provider,we have a fundamental role to play in creating a resilient and inclusive net zero carbon future.We are proud to have joined the U

253、N Race to Zero campaign in 2020,and have set clear and ambitious targets to become a carbon neutral business by 2050.In June 2021,we announced our net zero strategy focusing on developing new technologies,accelerating the take-up of sustainable fuels,and driving operational efficiency.Wepledgetomake

254、allournewproductscompatible with net zero operations by 2030,and to achieve net zero emissions in all operations and facilities in the same year.How are you trying to address the challenge of enabling aircraft sustainability?Technology plays a key role in delivering the breakthroughs society needs f

255、or a sustainable future.Rolls-Royce has decades of experience in pioneering advanced solutions in aviation,shipping,and power generation.Many of our products have evolved to have significantlyhigherfuelefficiencies.Our Trent XWB engine,the most efficient large gasturbine engine in service today,is a

256、n example of how we are making technological advances in our current product range,with the engine being 15%more fuel efficient than the first generation of Trent enginesmanufactured in the 1990s.Our Ultrafan is the largest aero-engine in the industry and will power both narrow and wide-body aircraf

257、t,with a significant 25%fuelefficiencyimprovementcomparedtothefirst-generationTrent model.Wehavealsomadesignificantprogressinthetestingof Sustainable Aviation Fuels,critical to reducing the commercial airline industrys emissions in the short term.Does Rolls-Royce see electrical power as a key route

258、to carbon neutrality?Our breakthrough technologies help decarbonise the complex,critical and carbon-intensive sectors in which we operate,including transport and energy,to drive sustainable future economic growth.We are now in a new and exciting era where electric power can reduce carbon emissions a

259、nd help achieve carbon neutrality.Rolls-Royce is building the worlds fastest all-electric Spirit of Innovation aircraft.We are also actively developing hybrid-electric and all-electric solutions forDr Bicky BhanguAccelerating technological innovation for a sustainable futureDr Bicky Bhangu,President

260、,Southeast Asia,Pacific&South Korea,Rolls-Royce 40 RETURN TO CONTENTSAssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgaviation,particularly in the urban air mobility,commuter,and regional markets through Rolls-Royce Electrical.What other initiatives are Rolls-Royce taking to reach a net zero carb

261、on future?Novel technologies bring growth opportunities such as in sustainable power generation through small modular reactors,microgrids,fuel cells,direct air capture and battery storage technologies.One example is in fuel cells.Rolls-Royce aims to have integrated 2MW of hydrogen fuel cells into op

262、erational microgrid demonstrators by 2023,enoughtopowerroughly400homes,orasmallcommunity.This project is expected to yield further insights into the integration of multiple power sources in a microgrid.How important are digital technologies?In light of digitalisations impact on industries throughout

263、 the region,we are developing digital capabilities through a coordinated strategy,which focuses on developing a digital ecosystem and future-forward products for customers.Our digital solutions such as Yocova improve efficiency by allowing aviation professionals to connect,collaborate,control,and co

264、mmercialise data sources and applications in an open and secure environment.What are the main areas of focus for your research?Our technology team develops sustainable products and services in smart manufacturing technology,electrical,data analytics and AI,and advanced repair and materials.Our suite

265、 of artificially intelligent technology solutions translatesvast volumes of data into actionable insights to facilitate knowledge-powered decision making.We work closely with top universities and government agencies regionally to conduct research and develop new applications to streamline the manufa

266、cturing processes.For example,our Rolls-Royce NTU Corporate Laboratory in Singapore is the largest amongst our University Technology Centres in the world.We are also a founding member of the Advanced Remanufacturing and Technology Centre(ARTC).Our Smart Manufacturing Joint Lab with ARTC and Singapor

267、e Aero Engine Services Limited develops next-generation aerospace manufacturing and MRO capabilities enabled by advanced processes,automation,and digital technologies.What is ASEANs role in driving transformational change in the aerospace sector?ASEAN remains one of the most vibrant growth areas in

268、the world,with a young and diverse talent pool.The movement of goods and connectivity of people form the backbone of the regions economies.Our challenge is to ensure that the region quickly gets back on its path of economic growth and prosperity after the pandemic and does this sustainably.As we fos

269、ter collaboration regionally,we will be able to lay stronger foundations to tackle global challenges together and accelerate technological innovation for a net zero world.41InvestIng In AseAn 2023-renewAbLe energyASEAN countries are committed to increasing the role and importance of renewable energy

270、 to meet energy demands.At the 26th UN Climate Change Conference(COP26)held in Glasgow in 2021,its members updated their Nationally Determined Contributions(NDCs)and signed up to the Glasgow Climate Pact and the Global Coal to Clean Power statement.Although unsurprisingly,there are variations betwee

271、n different ASEAN countries,they are all committed to increasing renewable energy and to employing grants,subsidies and the ASEAN Power Grid(APG)to do so.The APG is an ambitious initiative to eventually construct an integrated Southeast Asia power grid system.Singapore is at the forefront of develop

272、ing the APG,because its small sizemeansitfacesconsiderablechallengesingeneratingsufficientrenewable energy unilaterally.It will import up to 100MW each of low-carbon or clean electricity from Malaysia,Indonesia,and Lao PDR1.In June 20222,itreceivedthefirstrenewableenergyimportfromLaoPDRas part of th

273、e Lao PDR-Thailand-Malaysia-Singapore Power Integration Project(LTMS-PIP),which is intended to pave the way for larger-scale importsofupto4GWintoSingaporeby2035.Cross-border tradingLao PDR is aiming to be a major supplier of renewable energy in the region.It has already exported more than 6GW of cro

274、ss-border electricity to ASEAN members including Cambodia,Myanmar,Thailand,and Vietnam.Lao PDR has more than 8GW of installed hydropower capacity,which is set to increase in the near future to support domestic demand and future exports3.In January 2022,three companies Keppel Infrastructure Holdings,

275、a unit of Singapores Keppel Corp,Thai renewables developer Impact Electrons Siam Co Ltd(IES)and Chinese greentech company Envision Group signed an agreement to collaborate on projects to develop low-carbon electricity for export.One project is the 1GW extension of the Monsoon wind farm sited in the

276、Sekong and Attapeu provinces,but the trio also envisages taking on other renewable energy projects in Lao PDR,including solar and biomass.IES alone has more than Renewable Energy:Rising demand to boost supply42AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.org1,900MW of wind and solar assets in de

277、velopment and operations in Thailand,Japan,Lao PDR and Vietnam4.Monopoly endedAccording to The Economist5,Vietnam is leading the transition to clean energy in the region.It is the worlds 10th largest producer of solar power,having increased the share of electricity generated from zero to nearly 11%i

278、n just four years.The country is committed to net zero emissionsby2050andisnolongerbuildingnewcoal-firedpowerplants.It has also ended the monopoly for Vietnam Electricity on domestic power generation and introduced supporting governmental legislation and policies,including feed-in-tariffs6,attractiv

279、e tax incentives and land lease waivers to attract foreign investors7.In Thailand,the Governments most recent National Energy Plan 20228 states that new power plants must contribute to increasing the proportion of clean and renewable energy by 50%on existing levels.The country is already taking a pi

280、oneering approach with its pilot of peer-to-peer solar-generated electricity trading,using a blockchain platform9.This could also feed into the Governments Energy for All programme,which encourages communities to develop and own their own power generators using both waste-to-energy and solar technol

281、ogies.Energy storage technologies are another important area because these deal with the issue of intermittent renewable energy generation.Energy companies such as Egat and Global Power Synergy are already involved,and the Asian Development Bank has invested US$6.8 million inthefirstprivate-sectorpr

282、ojecttocombinebatterystoragewithutility-scale wind power10.Malaysia is expected to more than double renewable capacity from 6GWto14GW,risingfrom18%to30%ofthegenerationmix11.Its aim is that non-hydropower renewables will be 20%of the energy mix by 2025,making Large Scale Solar(LSS)investment a major

283、opportunity.The country already allows the installation of solar for self-consumption and has a Net Energy Metering Programme whereby excess energy is sold back into the grid.The nations LSS projects offer a successful pathway to utility-scale solar adoption,though investment rules limit foreignowne

284、rshipto49%equity.RETURN TO CONTENTS 43InvestIng In AseAn 2023-renewAbLe energy42Green capitalSimilarly,the Indonesian Government has shown its commitment to renewable energy by passing into law its plans to move the capital from Jakarta to a new,green city in East Kalimantan to be called Nusantra12.

285、Power will come from the Mentarang Induk Hydroelectric Plant on the Mentarang River with an installed capacity of 1,375MW and from huge solar parks,such as the PT Bukit Asam Solar PV Park III,a 200MW power project.The target for the country as a whole is that 23%of its energy needs will be supplied

286、from new and renewable sources by 2025,as pledged under the Paris Agreement13,and 31%by 205014.The Government has pledged to provide more incentives or ease of business for developers on grid integration,land acquisition and scheme alternatives,while offering more feasible feed-in-tariffs15.To speed

287、 up the process,coal plants owned by the state-owned utility PLN will be retired sooner than their planned lifetime16.The opportunities in the renewable energy sector are massive in ASEAN,because the regions electricity demand is expected to double by2040,twicetheglobalaveragerate17.Member states ar

288、e ready to welcome overseas expertise and investment to meet this challenge.1https:/ has major plans to increase the regions tourism sector with a specificfocusonsustainability,aslaidoutintheASEANComprehensiveRecovery Framework and its Implementation Plan1.Tourism has always been an important part o

289、f the income of ASEAN countries.Beforethepandemic,thesectoraccountedfor14.3%ofcombined GDP and provided more than 13%of employment around 30 million jobs.Then Covid-19 struck:the number of international tourists plummeted by more than 80%and tourism revenue fell by more than 75%2.Early reactions to

290、the shortfall in visitors included increasing domestic tourism using discounted fares,subsidised accommodation and increaseddomesticflights.VietnamlaunchedaVietnamesepeopletravel in Vietnam campaign while Thailand launched the Rao Tiew Duay Gun(We travel together)programme,with a budget of US$608 mi

291、llion to help increase domestic tourism3.Focus on sustainabilityThat is not to say that pre-pandemic tourism was without its challenges.Not least the strain it often placed on local resources and infrastructure and the environmental damage that was often an indirect consequence of hosting large numb

292、ers of overseas visitors.Boracay island in the Philippines demonstrates how rapid growth in tourism can overwhelm an area.The number of visitors more than doubled in six years4,placing such a strain on the sewer and waste management systems that it had to be closed to visitors for about six months f

293、or environmental rehabilitation5.The coming years will enable ASEAN countries to develop coordinated,long-term,sustainable plans to make the most of their impressive tourism assets.Meanwhile,a number of cross-border initiatives have been introduced to enhance the tourism offer across the region.Thes

294、einclude an ASEAN safe tourism travel stamp to assure travellers of high standards of hygiene and safety,greater digitalisation of tourism and strengthening data and information networks.Countries are also working together to promote connectivity and travel within the region.Government supportIndivi

295、dual countries are also developing their own sustainable,post-pandemic tourism strategies.In the short-term,this has generally meant supporting the sector with subsidies and encouraging an expansion in domestic tourism,while drawing up longer-term plans.Thailand,for instance,aims to target premium m

296、arkets.The Thai Government is launching a long-term residence programme to attract foreigners to the country through new visas which last for up to 10 years,tax and investment incentives,a relaxation of the restrictions on foreign ownership of residential property,and more6.The programme will target

297、 four key markets:wealthy global citizens,wealthy retirees,work-from-Thailand professionals,and other highly skilled professionals.The countrys ambition is to welcome over one million additional visitors and generate over US$26 billion in domestic spendingoverfiveyears,startingin2022.Similarly,Malay

298、sia also launched a comprehensive support programme aspartofitseffortstoboostitstourismindustry,includingfinancialaidand vouchers7.Tourism is vital to its economy,as more than 23%of jobs are linked to the sector.The National Tourism Policy(DPN)2020-20308 highlights environmental and eco-tourism as a

299、 key opportunity.The countrys abundance of natural assets makes it ideally placed to capitalise on.The aim of the 10 year plan is to make the countrys tourismfirmsmorecompetitive,whilealsoencouragingsustainableandinclusive sector development and planning for the future.Tourism:Restoring sustainably4

300、4AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgRETURN TO CONTENTS 45InvestIng In AseAn 2023-tourIsM441https:/asean.org/asean-comprehensive-recovery-framework-and-its-implementation-plan/2https:/ goal is to brand Malaysia as the top-of-mind eco-tourism destination in the world,”Prime Minister,M

301、uhyiddin Yassin said.As part of the new tourism policy,it has cut red tape for tourists,no longer insisting on travel insurance,for example9,and is planning to create special tourism investment zones for projects to boost public-private cooperation and attract more local and international investment

302、.Digital nomadsThe Asian Development Bank(ADB)10 is also supporting a change in emphasis in the sector,looking for longer-term visitors who might be fewer in number yet are spending more and placing less strain upon resources.It points out that holiday home rental businesses,such as Airbnb,have seen

303、 bookings for 28 nights or longer increase since 2019.As part of the move to sustainable tourism,the ADB suggests that governments in the region should update their regulations and strengthen their digital infrastructure to enable businesses to cater to this type of working traveller who are dubbed

304、digital nomads.Covid-19 demonstrated just how important the tourism sector is to ASEAN member states.As the risks from the pandemic continue to recede,authorities across the region have taken up the challenge and are keen to prioritise different forms of tourism that may be more low-key and less of

305、a strain upon resources.They are also open to foreign investment and expertise to make the most of their heritage and natural resources.Education is a priority focus for the countries of ASEAN,particularly higher education.There is good reason for this.More than a decade ago,offering a deep resource

306、 of cost-effective labour may have beensufficienttoattractforeigninvestors.Butthisisnolongerthecase.Countries must offer more,as Samsungs venture into Vietnam shows:the electronics giant chose the country to become its regional manufacturing hub due,at least in part,to the quality of its young and e

307、ducated workforce1.All ASEAN ministers of education have signed up to the new ASEAN Work Plan on Education 2021-25.What this means for higher education is summarised as“Enhanced regional capacity in higher education as part of lifelong learning provision,including the harmonisation of ASEAN higher e

308、ducation”,moving the region into sharing the same academicstandards.Theaimofharmonisationisthataqualificationin one member state a degree for example will be recognised in another2.The UK has been active in the ASEAN education sector for many years,through the British Council.It participated in the

309、European Union Support to Higher Education in the ASEAN Region,known as SHARE,up to the end of 2022.This programme has contributed to harmonisation through a number of projects such as producing a study on Graduate Employability in ASEAN,as part of a series of studies to support the Master Plan on A

310、SEAN Connectivity 2025.Better jobsAwareness of the importance of higher education is accompanied by a growing demand for tertiary education and the value of a foreignuniversityqualificationintheemploymentmarket.Academicreputation,employment prospects and cost are the top priorities forstudents3.In I

311、ndonesia,for instance,college graduates typically earn three times more than high school graduates over a 10 year period,while their unemployment rate is 50%less4.For wealthier students,this often means studying abroad.Traditionally,the US and the UK were the favoured destinations,but many are also

312、turning to Australia as being nearer and more affordable5.According to the UNESCO Institute for Statistics(UIS),Vietnam,the highest contributor of outbound tertiary students among ASEAN countries,recorded a 16%increase in students studying abroad,from 108,301 in 2018 to 126,059 in 2019.Similarly,Cam

313、bodia,Indonesia,Lao PDR,Myanmar,and the Philippines recorded 7%to 25%increases during the same period6.International campusesPost-Covid,the proven alternative to attracting more ASEAN students to study overseas is to establish a campus branch in an ASEAN country.Monash University(Australia),Nottingh

314、am University,Southampton University and Heriot-Watt University,for example,all have campuses in Malaysia and the Royal Melbourne Institute of Technology(RMIT)has a campus branch in Vietnam.The appetite for international campus branches in the region is likely to grow,too.According to a projection b

315、y the United Overseas Bank(UOB),65%of the population is expected to be middle-class by 2030,with 60%of this group under the age of 35.In addition,they will want a university education that might not be available from an indigenous university.Investment welcomedMany countries are strengthening their

316、efforts to attract more foreign investment in the education sector.In 2018,Indonesia passed laws which enabled foreign universities to set up stand-alone branchEducation:Securing future generations46AssocIAtIon of southeAst AsIAn nAtIons www.AseAn.orgRETURN TO CONTENTS 47InvestIng In AseAn 2023-educ

317、AtIon461https:/ without requiring a local partner7.Previously,the higher education sector was effectively nationalised,with government entities in charge of standardisation and accreditation of universities8.Two Australian universities are already setting up campuses,Monash in south-west Jakarta and

318、 Central Queensland University(CQU)in the North Sumatran capital of Medan9.As part of the arrangement,CQU will deliver Australian MBA courses to Indonesian Government officialsinpartnershipwithJakartasBakrieUniversity.Indonesia is not alone.Around the same time,the Thai Government announced that for

319、eign universities would be allowed to open campuses to help develop the countrys Eastern Economic Corridor.Two universities have applied so far:US based Carnegie Mellon University and National Taiwan University10.The Philippines Government has passed the Transnational Higher Education Act,enabling f

320、oreign universities to provide education services in the country through partnering with a local institution11.The British Council and the Commission on Higher Education Philippines have since supported new university partnerships to build local expertise in niche areas critical for national develop

321、ment in the Philippines.Some of the courses developed include sustainable food systems,international public health,oceanography,meteorology,and data science.E-learning expandsWhile the commercial opportunities for opening campuses in ASEAN countries are attractive,the regions geography Indonesia and

322、 the Philippines are archipelagos,for instance makes distance learning via the internet a potentially easier route to develop.It also offers scope for overseas software providers.For instance,IndonesiaX12 offers free and paid-for courses online.Similar services are offered through institutions like

323、AMA University and Topica in the Philippines and Vietnam,respectively.HarukaEdu(now Pintar)shows another way to invest in education.This Indonesian start-up uses its own e-learning platform to enable higher education institutions to offer degrees online.It attracted investment from the Pearson Affor

324、dable Learning Fund(PALF),the venture capital arm of UK based Pearson,so it could develop new courses with its latest university partners13.As a whole,ASEAN countries have a lot to offer potential investors who can provide career-enhancing courses.The demand is there and set to grow as the workforce

325、 is increased by ambitious young people.The various governments also recognise they need an educated workforce if they are to attract the knowledge-based industries of the future,and so have removed many of the barriers to investment.The ASEAN regions healthcare sector is changing rapidly as its dem

326、ographics,society and lifestyle evolve.Economic growth is creating greater demand for quality and innovative healthcare services,while the focus has shifted because of an ageing population and reduced infant mortality.Deaths from communicable diseases are still prominent in Cambodia,Myanmar,and Lao

327、PDR but in the rest of the ASEAN region,the major causes of death are now chronic diseases and injuries,changing the priorities for healthcare accordingly.Greater disposable income also means that people in ASEAN can afford higher-value products and services such as elective treatments and cosmetic

328、surgery,fertility clinics,sports rehabilitation,and weight loss treatments.In general,the population is becoming more interested in prevention rather than cure,prioritising quality of life and recognising stress as a serious issue to be avoided through living a healthy lifestyle.Sector spending grow

329、sAccordingtorecentfiguresfromtheWorldHealthOrganisation,ASEANspendscloseto4%ofitsGDPonhealthcare,withSingaporeatthetopofthelistwithpercapitaexpenditureatUS$2,4501,more than three times the amount of the second highest,Brunei,which spends an average of US$6502.Thesefiguresfallrapidly:MalaysiaUS$409,T

330、hailand US$289,Vietnam US$169,the Philippines US$133,Indonesia US$112,Cambodia US$105,Lao PDR US$63 and Myanmar US$56.By comparison,the G7 spends an average of US$5,190 per capita3.These figures are expected to rise as ASEAN improves healthcareservices and catches up with the average spending rate i

331、n other markets.ASEAN countries are slowly committing to universal healthcare systems and these systems have become a key driver in changing the behaviour of local populations towards health.Major markets in the region,such as Indonesia and the Philippines,have succeeded in implementing their own na

332、tional insurance programmes.Indonesia is considered the largest in the world,covering more than 180 million people.Virtually the whole of Thailands population is covered for primary and hospital care and Singapore offers the most advanced levels of healthcare for its citizens,providing specialised t

333、reatment,such as heart transplants and neurological procedures.Travel and treatmentMedical tourism is also an important source of income in the region.Globally,it was worth some US$28 billion in 2020,with nearly one-third of the 11 million global medical consumers travelling to Southeast Asia.Foreignpatientsaccountforsome40%ofrevenueinprivatehospitals in Singapore,Malaysia,and Thailand4.These thre